The Finance Ministry has confirmed that government secured over 80% participation in the Domestic Debt Exchange Programme (DDEP).
This indeed confirms an earlier report by Joy Business that the Government of Ghana has met its target with about 86% participation.
In a statement, it said the “Government’s Domestic Debt Exchange Program (DDEP) closed on Friday February 10, 2023 with over 80% participation of eligible bonds. The government wants to thank the people of Ghana for their forbearance and support throughout these very difficult times”.
It however maintained that the programme is voluntary, insisting that persons that have challenges have the option not to participate in the programme.
“Having in mind that the entire exercise was voluntary, all throughout the exercise, government always affirmed that crucial fact “that individual Bondholders are free not to participate”. Thus, the right of the individual to self-exempt was never in doubt”.
The statement reiterated that under the circumstances government always made a humble appeal to bondholders to participate in the DDEP; seeing it as a very critical act of burden-sharing in the ongoing national effort to tackle the economic crisis, bring back macroeconomic stability and guarantee sustainable growth and prosperity for the people of Ghana.
“Government in addition, offered alternatives to encourage individual bondholders and retirees to tender for the new bonds which will have wider secondary market circulation. The Government is grateful to those who took part in the advocacy in securing an improved offer for participants”, it emphasised.
Government assures individual bondholders
The government reassured all individual bondholders who elected not to participate that their coupon payments and maturing principals, like all government bonds, will be honoured in line with the government fiscal commitments.
It pointed out that the DDEP is being done to help protect the economy and enhance our capacity to service our public debts effectively, adding, “the alternative of not executing the DDEP would have brought grave disorder in the servicing of our national debt and exacerbated the current economic crisis”.
The government through the Finance Ministry expressed gratitude for the overwhelming participation of all bondholders, saying, “your support and contributions have gotten your country much closer to securing the IMF programme”.
The Finance Ministry assured the pensioners that all government bonds that are maturing will be paid.
“We would like to stress that, all Individual bondholders, especially our Senior Citizens, should rest assured that their coupon payments and maturing principals, like all Government bonds, will be honoured in line with Government’s Fiscal commitment”.